Tex. Tax Code Section 111.0044
Special Procedures for Third-party Orders and Subpoenas


(a)

(1) If any order or subpoena described in Section 111.0043 (General Audit and Prehearing Powers) of this code is served on any person who is a third-party recordkeeper, and the order or subpoena requires the production of any portion of records made or kept of the business transactions or affairs of any person (other than the person ordered or subpoenaed) who is identified in the description of the record contained in the order or subpoena, then notice of the order or subpoena shall be given to any person so identified within three days of the day on which the service on the third-party recordkeeper is made but no later than the 14th day before the day fixed in the order or subpoena as the day upon which the records are to be examined. The notice shall be accompanied by a copy of the order or subpoena which has been served and shall contain directions for staying compliance with the order or subpoena under Subsection (b)(2) of this section.

(2)

The notice shall be sufficient if, on or before the third day, the notice is delivered in hand to the person entitled to notice or is mailed by certified or registered mail to the last mailing address of the person or, in the absence of a last known address, is left with the person ordered or subpoenaed. If the notice is mailed, it shall be sufficient if mailed to the last known address of the person entitled to notice.

(3)

For purposes of this section, the term “third-party recordkeeper” means:

(A)

a mutual savings bank, cooperative bank, domestic building and loan association, or other savings institution chartered and supervised as a savings and loan or similar association under federal or state law, a bank as defined in Section 581 of the Internal Revenue Code of 1954, as amended (26 U.S.C. 581), or any credit union within the meaning of Section 501(c)(14)(A), Internal Revenue Code;

(B)

any consumer reporting agency as defined under Section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f));

(C)

any person extending credit through the use of credit cards or similar devices; and

(D)

any broker as defined in Section 3(a)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)).

(4)

Subsection (a)(1) of this section may not apply to an order or subpoena served on the person with respect to whose liability the order or subpoena is issued or an officer or employee of the person; or any order or subpoena to determine whether or not records of the business transactions or affairs of an identified person have been made or kept; or any order or subpoena described in Subsection (e) of this section.

(5)

An order or subpoena to which this subsection applies shall identify the taxpayer to whom the order or subpoena relates and to whom the records pertain and shall provide other information to enable the person ordered or subpoenaed to locate the records required under the order or subpoena.

(b)

(1) Notwithstanding any other law or rule of law, a person who is entitled to notice of an order or subpoena under Subsection (a) of this section shall have the right to intervene in any proceeding with respect to the enforcement of the order or subpoena under Subsection (e) of Section 111.0043 (General Audit and Prehearing Powers) of this code.

(2)

Notwithstanding any other law or rule of law, a person who is entitled to notice of an order or subpoena under Subsection (a) of this section shall have the right to stay compliance with the order or subpoena if, not later than the 14th day after the day the notice is given in the manner provided in Subsection (a)(2) of this section:

(A)

notice in writing is given to the person ordered or subpoenaed not to comply with the order or subpoena;

(B)

a copy of the notice not to comply with the order or subpoena is mailed by registered or certified mail to the person and to the office the comptroller directs in the notice referred to in Subsection (a)(1) of this section; and

(C)

suit is filed against the comptroller in a district court of Travis County to stay compliance with the order or subpoena.

(c)

No examination of any records required to be produced under an order or subpoena as to which notice is required under Subsection (a) of this section may be made:

(1)

before the expiration of the 14-day period allowed for the notice not to comply under Subsection (b)(2) of this section; or

(2)

when the requirements of Subsection (b)(2) of this section have been met, except in accordance with an order issued by a district court of Travis County authorizing examination of the records or with the consent of the person staying compliance.

(d)

If any person takes any action as provided in Subsection (b) of this section and such person is the person with respect to whose liability the order or subpoena is issued under Section 111.0043 (General Audit and Prehearing Powers) of this code (or is the agent, nominee, or other person acting under the direction or control of such person), then the running of any period of limitations under Subchapter D of this chapter with respect to the person shall be suspended for the period during which a proceeding and appeals of the proceeding with respect to the enforcement of such order are pending.

(e)

Any order or subpoena issued under Section 111.0043 (General Audit and Prehearing Powers) of this code that does not identify the person with respect to whose liability the order is issued may be served only after a court proceeding in which the comptroller establishes that:

(1)

the order relates to the investigation of a particular person or ascertainable group or class of persons;

(2)

there is a reasonable basis for believing that the person or group or class of persons may fail or may have failed to comply with any provision of state law; and

(3)

the information sought to be obtained from the examination of the records (and the identity of the person or persons with respect to whose liability the order is issued) is not readily available from other sources.

(f)

In the case of an order or subpoena issued under Section 111.0043 (General Audit and Prehearing Powers) of this code, the provisions of Subsections (a)(1) and (b) of this section may not apply if, upon petition by the comptroller, the court determines, on the basis of the facts and circumstances alleged, that there is reasonable cause to believe the giving of notice may lead to attempts to conceal, destroy, or alter records relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying, or production of records.

(g)

(1) A district court of Travis County has jurisdiction to hear and determine proceedings brought under Subsection (e) or (f) of this section. The determinations required to be made under Subsections (e) and (f) of this section shall be ex parte and shall be made solely upon the petition and supporting affidavits. An order denying the petition shall be deemed a final order that may be appealed.

(2)

Except for cases the court considers of greater importance, a proceeding brought for the enforcement of any order, or a proceeding under this section, and appeals, take precedence on the docket over all cases and shall be assigned for hearing and decided at the earliest practicable date.

(h)

The comptroller shall by rule establish the rates and conditions for payments to reimburse reasonably necessary costs directly incurred by third-party recordkeepers in searching for, reproducing, or transporting books, papers, records, or other data required to be produced by order or subpoena upon request of the comptroller. The reimbursement shall be in addition to mileage and fees paid under Subsections (d)(1) and (d)(2) of Section 111.0043 (General Audit and Prehearing Powers) of this code.
Acts 1981, 67th Leg., p. 1499, ch. 389, Sec. 1, eff. Jan. 1, 1982.

Source: Section 111.0044 — Special Procedures for Third-party Orders and Subpoenas, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­111.­htm#111.­0044 (accessed Apr. 20, 2024).

111.001
Comptroller to Collect Taxes
111.002
Comptroller’s Rules
111.003
Comptroller’s Investigations
111.004
Power to Examine Records and Persons
111.005
Governmental Entities to Cooperate
111.006
Confidentiality of Information
111.007
Criminal Penalties for Disclosing Federal Tax Information
111.008
Deficiency Determination
111.009
Redetermination
111.010
Suit to Recover Taxes
111.011
Tax Collections and Reports by Businesses
111.012
Security for the Payment of Taxes
111.013
Evidence: Tax Claims
111.014
Evidence: Copies of Graphic Matter
111.015
Remedies Cumulative
111.016
Payment to the State of Tax Collections
111.017
Seizure and Sale of Property
111.018
Notice of Sale of Seized Property
111.019
Sale of Seized Property
111.020
Tax Collection on Termination of Business
111.0021
Application to Other Taxes and Fees
111.021
Notice to Holders of and Levy Upon Assets Belonging to Delinquent
111.0022
Application to Other Laws Administered by Comptroller
111.022
Jeopardy Determination
111.023
Written Authorization
111.024
Liability in Fraudulent Transfers
111.025
Delinquent Taxpayer Financial Records
111.0034
Advanced Database System for Audits
111.0035
Advanced Database System for Tax Collections
111.0036
Out-of-state Audits
111.0041
Records
111.0042
Sampling in Auditing
111.0043
General Audit and Prehearing Powers
111.0044
Special Procedures for Third-party Orders and Subpoenas
111.0045
Use of Outside Personnel
111.0046
Permit or License
111.0047
Suspension and Revocation of Permit or License
111.0048
Reissued or New Permit or License After Revocation or Suspension
111.0049
Appeals
111.051
Reports and Payments
111.052
Form of Report
111.053
Filing Dates: Weekends and Holidays
111.054
Timely Filing: Mail Delivery
111.055
Timely Filing: Diligence
111.057
Extension for Filing Report
111.058
Filing Extension Because of Natural Disaster
111.059
Oath Not Required
111.060
Interest on Delinquent Tax
111.061
Penalty on Delinquent Tax or Tax Reports
111.062
Acceptance of Credit Cards for Payment of Certain Taxes and Fees
111.063
Penalty for Failure to Use Electronic Transfers and Filings
111.064
Interest on Refund or Credit
111.0075
Provision of Information Relating to Tax Audits
111.0081
When Payment Is Required
111.101
Settlement
111.0102
Suit Challenging Collection Action
111.102
Settlement on Redetermination
111.103
Settlement of Penalty and Interest Only
111.104
Refunds
111.105
Tax Refund: Hearing
111.106
Tax Refund: Notice of Intent to Bypass Hearing
111.107
When Refund or Credit Is Permitted
111.108
Recovery of Refund or Credit
111.109
Tax Refund for Wages Paid to Employee Receiving Aid to Families with Dependent Children
111.110
Tax Credit for Real Property Contributed to an Institution of Higher Education
111.201
Assessment Limitation
111.202
Suit Limitation
111.203
Agreements to Extend Period of Limitation
111.204
Beginning of Period of Limitation
111.205
Exception to Assessment Limitation
111.206
Exception to Limitation: Determination Resulting from Administrative Proceeding
111.207
Tolling of Limitation Period
111.251
Assignment on Payment by Third Person
111.252
Notice to Taxpayer
111.253
Venue for Enforcement of Assigned Claims
111.254
Reassignment
111.255
Recording of Assignment
111.351
Wireless Equipment for Auditors
111.352
Computer and Wireless Equipment for Enforcement Staff
111.353
Advanced Scanners for Field Offices
111.00452
Employment of Investigators
111.00455
Contested Cases Conducted by State Office of Administrative Hearings
111.00457
Information Relating to Other Permit or License Requirements
111.0511
Restricted or Conditional Payments to Comptroller Prohibited
111.0611
Personal Liability for Fraudulent Tax Evasion
111.0625
Electronic Transfer of Certain Payments
111.0626
Electronic Filing of Certain Reports
111.1042
Tax Refund: Informal Review
111.2051
Assessment When Refund Claimed

Accessed:
Apr. 20, 2024

§ 111.0044’s source at texas​.gov